The National Company Law Tribunal (NCLT) rejected the objections raised by Tata Steel over the bids submitted by JSW and its erstwhile promoters and approved the JSW Steel's Rs 19,700 crore resolution plan for Bhushan Power & Steel Ltd (BPSL).
A two-member principal bench of the National Company Law Tribunal (NCLT) on Thursday approved the JSW Steel's Rs 19,700 crore resolution plan for debt-ridden Bhushan Power & Steel Ltd (BPSL).
The criminal cases against the promoters of BPSL for siphoning of the funds from the company will not impact JSW Steel as its new promoter, the bench headed by president Justice MM Kumar said.
In keeping with the ruling by the National Company Law Appellate Tribunal (NCLAT) in the ArcelorMittal case, the tribunal has also said the profits made by BPSL during insolvency period will be distributed between creditors of Bhushan Power.
Objections raised by Tata Steel over bids submitted by JSW and its erstwhile promoters were rejected.
Tata Steel had objected the improved financial offer of JSW Steel before the Resolution Professional and the Committee of Creditors' of Bhushan Power and Steel.
After concluding hearing from the parties in April, the NCLT had reserved its judgement
On July 26, 2017, after admitting a plea of its lead lender Punjab National Bank (PNB), corporate insolvency resolution process (CIRP) was initiated against BPSL.
Read Exclusive COVID-19 Coronavirus News updates, at MyNation.
Last Updated Sep 5, 2019, 5:38 PM IST